OPINION:
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Which would you rather be — Blockbuster or Netflix?
Once a giant in the video rental industry, Blockbuster crumbled because it failed to adapt to a changing world. On the other hand, Netflix embraced new technology, transformed the industry and soared to global dominance. Today, our nation’s ports stand at a similar crossroads: Embrace innovation or risk falling behind.
Despite handling 70% of America’s international trade, our ports are alarmingly behind in adopting the automation and technology that modern global trade demands. While ports in Europe and Asia have fully embraced automation, the United States risks becoming a relic, held back by resistance from the International Longshoremen’s Association, or ILA.
The union is demanding a ban on automation, even threatening to strike — a move that could start as soon as Oct. 1. A strike could cost the U.S. economy a staggering $3.7 billion daily, halting nearly half the nation’s cargo flow. But more than the immediate economic disruption, what’s at risk is America’s long-term competitiveness.
We’ve seen this play out before. In the 1960s and 1970s, unions, including the ILA, fought against containerization — the introduction of standardized shipping containers that revolutionized trade. Initially resisted, containerization soon became the backbone of global logistics, making shipping faster, cheaper and more efficient. The industry adapted, and so did the workers. It’s time to repeat history — this time with automation.
Union opposition to innovation is not new. In the late 19th and early 20th centuries, the Brotherhood of Electrical Workers resisted the introduction of the telephone. Similarly, railroad unions opposed the transition from steam locomotives to diesel-electric engines in the 1940s. Yet these technologies ultimately transformed their respective industries, driving productivity and enhancing working conditions. The same is true for port automation today.
Look at the stark contrast between American ports and their Asian counterparts. The Port of Shanghai in China, one of the busiest in the world, relies on robotic cranes and automated guided vehicles to handle containers at lightning speed. Similarly, Singapore’s port has fully automated terminals where autonomous cranes and vehicles streamline cargo handling, minimizing delays and errors.
Meanwhile, many U.S. ports, particularly on the East Coast, still rely on traditional, inefficient methods. The gap in automation leaves our ports far more vulnerable to disruption. If the U.S. doesn’t act, we risk being left behind.
The fear that automation will eliminate jobs is outdated. Automation boosts productivity. As ports become more efficient, they can handle more cargo, requiring more workers to manage the increased volume. But this can happen only if we invest in workforce development and train longshoremen for the advanced roles of tomorrow.
Take the Port of Rotterdam, one of Europe’s busiest ports, which embraced automation more than 30 years ago. Instead of eliminating jobs, automation created new, higher-skilled roles, improving both efficiency and workplace conditions. The same opportunity exists for American workers if we choose to embrace it.
Longshoremen are critical to our economy, and their work should be valued. Resisting modernization to preserve outdated roles, however, will ultimately harm both workers and the industry. Instead of rejecting automation, we should be embracing it.
This is not a battle between labor and technology. It’s a challenge of preparing America’s ports and workers for the future. By investing in automation and upskilling, we can build a port system that supports workers, drives business and powers our economy for decades to come. We’re already decades behind other countries; let’s not fall further behind.
It’s time for leadership. The administration must intervene and bring both sides back to the negotiating table. If we fail to act, America’s ports risk becoming the Blockbuster of global trade — outdated and outpaced by competitors that embraced innovation.
• Eric Hoplin is president and CEO of the National Association of Wholesaler-Distributors.
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